South Korean media: 70%, Chinese electric vehicles sweep Southeast Asian market!

On July 12, the South Korean media "JoongAng Ilbo" published an article stating that after Europe, Chinese automakers such as BYD and Chery are actively entering the Southeast Asian electric vehicle market. Analysts believe that although Hyundai Motor is also building a production system in the region to respond, it must revise its Southeast Asian strategy.

According to the US market research company Romotion, last year, Chinese car brands accounted for about 70% of the electric vehicle sales in Indonesia, Thailand, and Malaysia. The sales of environmentally friendly cars in Southeast Asia account for 14% of the total car sales, and Chinese companies have monopolized this market, which is growing rapidly every year.

Especially in Indonesia, the competition for electric vehicles is intensifying. As the largest automotive market in Southeast Asia, Indonesia's electric vehicle sales reached 43,188 units last year, a 150% increase compared to the previous year. Chinese electric vehicle companies led this growth. According to the Indonesian Automotive Manufacturers Association (GAIKINDO), the top four pure electric vehicle sales in the first quarter of this year were all Chinese brands. BYD ranked first with 5,718 units sold, followed by Wuling (4,795 units), Chery (4,399 units), and Denza (2,524 units). The fifth place was held by Hyundai Motor Company with sales of 573 units, only one-tenth of BYD's sales.

Chery's sales in Indonesia in the first quarter of the year increased by 200%. Recently, Chinese brands have also performed well in the high-end electric vehicle market. Denza, a high-end brand under BYD, has a unit price close to 90 million South Korean won, and sold 2,524 units just in Indonesia. This means that in addition to price competitiveness, the trust and awareness of local consumers towards Chinese electric vehicles have also significantly increased.

Chinese enterprises also see the potential of the Southeast Asian market and continue to make large-scale investments. BYD will complete its factory in Indonesia this year, aiming to produce 150,000 vehicles locally per year. In addition, Changan, Geely, and XPeng Motors are also targeting the Southeast Asian market, with strategies similar to BYD.

Hyundai Motor established a dedicated electric vehicle production plant in Indonesia in 2022, establishing a local production and sales base. Last year, Hyundai Motor and LG Energy Solution established a joint venture HLI Green Power in the region, establishing a local production system for the Kona EV. However, the offensive of Chinese automakers was faster than expected, causing great distress to South Korean automakers.

Especially in the first quarter of this year, Hyundai Motor's sales in the Indonesian market declined by 3.9%, with a market share of only 3.4% (6,958 units). This is because in the internal combustion engine vehicle market, it lags behind Japanese brands such as Toyota and Mitsubishi, and in the electric vehicle market, it also lags behind Chinese automakers.

Hyundai Motor Company plans to expand its locally produced models and emphasizes its technological competitiveness. Considering the local demand for premium brands, the company is also considering localizing premium electric vehicle models. In addition, the company is vigorously conducting sports marketing to enhance brand awareness. By signing an official cooperation agreement with the Southeast Asian Football Federation and sponsoring the ASEAN Championship, it has strengthened local marketing.

Professor Lee Ho-gon from the Department of Automotive Engineering at Daedong University said, "Indonesia has a population of more than 280 million, and the government's policy on electric vehicle popularization, convenient procurement of battery raw materials, etc., are attractive markets in many aspects. With the comprehensive offensive of Chinese enterprises, we need to demonstrate differentiated advantages in service centers and other areas."

Original article: https://www.toutiao.com/article/1837444057618436/

Statement: This article represents the views of the author.